Govt OK’s bank loans at lower rates to distilleries for raising ethanol production

The Union Cabinet on Wednesday approved a scheme to provide bank loans at lower rates to distilleries producing ethanol for doping in petrol, with a view to raising India’s ethanol production capacity to suck out surplus sugar as well as cut oil imports.

Oil Minister Dharmendra Pradhan said the Government is targeting to more than double blending of ethanol in petrol to 20 per cent by 2030, for which domestic production capacity has to be augmented. Cabinet also approved a multi-modal logistics and transport hub (MMTH) at Greater Noida in Uttar Pradesh with a view to making India a strong player in the global value chain.

The Cabinet Committee on Economic Affairs (CCEA), headed by Prime Minister Narendra Modi, approved a modified scheme for extending interest subvention to augment ethanol production capacity, he said.